Citi Launches $40M Sandy Recovery Loan Fund with Mayor Bloomberg and CPC
By Andrew Ditton, Co-Head of Citi Community Capital December 21, 2012 03:45 PMToday, Citi has launched the Storm Recovery Loan Fund, a pilot program to provide up to $40 million in low-cost loans to fund the repair of multi-family buildings damaged by Hurricane Sandy along with Mayor Michael R. Bloomberg, and The Community Preservation Corporation. Building owners can put the funds toward resiliency measures, like installing state-of-the-art heating and electric plants that are repositioned to withstand the next storm by being located on higher floors and/or in waterproof compartments. This focus on mitigation will decrease the cost of recovery and reduce the destructive impact of future storms. The program will also promote green improvements that will conserve energy and save money over the long term. The new fund blends a subsidy from Housing Preservation and Development with Community Preservation Corporation financing to provide loans that are below market rate, allowing owners to make needed repairs in the aftermath of Sandy.
Both for-profit and not-for-profit owners of multifamily buildings in NYC are eligible to apply for the Storm Recovery Loan Fund. Loan proceeds may be used for repair work ranging from systems replacement and storm mitigation retrofits to gut rehab, where necessary. Storm Recovery Loans may have up to a 30-year term. CPC's portion of the loan will have a rate of approximately 4.5%, and HPD's funds have an interest rate of 1%, for a blended rate below other conventional financing.
All projects must comply with HPD standard specifications and substantial rehab projects must achieve Enterprise Green Communities Certification. In keeping with NYC's Greener Greater Buildings Plan, all of the properties financed under this program will be benchmarked for energy usage and retrofit for energy savings will be included in their scopes of work. All buildings burning number 6 oil will be converted to comply with the City's Clean Heat initiative. In addition, gut rehabilitation projects must meet HPD's construction specifications and design guidelines.
Citi is proud to be part of this initiative to help rebuild the communities that were affected by this catastrophic event and we will continue to be an active participant in the ongoing recovery efforts. We are confident that the Storm Recovery Loan Fund will help provide a quick and efficient funding source throughout the rebuilding process.
Building owners who are interested in applying for the program should go to NYC.gov or call 311.